Hongfa(600885)2025-05-14 06:45Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [6][3]. Core Views - The company is expected to achieve a revenue of 14.1 billion yuan in 2024, representing a year-over-year growth of 9.07%, and a net profit of 1.631 billion yuan, reflecting a year-over-year increase of 17.09% [1][3]. - The company has strengthened its leading position in the industry, with a global market share increase of 1.7 percentage points in 2024, making it the largest in the relay market [2]. - The company has invested over 900 million yuan in technological upgrades and capacity expansion, adding 29 automated production lines to enhance efficiency in high-pressure direct current relays and automotive relays [2]. Financial Performance - In Q1 2025, the company reported a revenue of 3.983 billion yuan, a year-over-year increase of 15.35%, and a net profit of 411 million yuan, also up by 15.47% year-over-year [1]. - The gross profit margin for 2024 is projected to be 36.21%, with a net profit margin of 15.34% [1]. - The company expects to achieve a net profit of 1.879 billion yuan in 2025, with a growth rate of 15.23% [3]. Market Position - The company holds a 40% market share in high-pressure direct current relays, 23.1% in automotive relays, and 57.1% in power relays, benefiting from the global smart grid transformation [2]. - The expansion of the company's production bases in Germany and Indonesia is expected to enhance its competitiveness in the European market and diversify its product offerings [2]. Financial Projections - The projected revenue growth rates for the company are 12.15% in 2025, 14.23% in 2026, and 14.76% in 2027 [5]. - The earnings per share (EPS) is expected to increase from 1.56 yuan in 2024 to 2.40 yuan in 2027 [5].